Emerging End Use Models for Flat Panel Displays

Emerging End Use Models for Flat Panel Displays

Loading
Loading Social Plug-ins...
Language: English
Save to myLibrary Post page as Slide Download PDF
Go to Page # Page of 21
 
Author: Steve Buhaly (Fellow) | Visits: 1438 | Page Views: 1437
Domain:  High Tech Category: Displays Subcategory: Emerging Markets 
Upload Date:
Short URL: http://electronics.wesrch.com/pdfEL1NABYCVMFCZ

Loading
Loading...



px *        px *

* Default width and height in pixels. Change it to your required dimensions.

 
Contents:
Needham Growth Conference
NYC, January 12, 2005

Steve Buhaly
Chief Operating Officer

Planar Systems, Inc.

www.planar.com � PLANAR 2004

Safe Harbor Provisions
This presentation contains forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995 that are based on current expectations, estimates and projections about the Company's business, management's beliefs, and assumptions made by management. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements. These statements speak only as of today and the company undertakes no obligation to update any such statements to reflect events or circumstances occurring after today.

� 2004 Planar Systems, Inc.

Overview of Presentation
Planar's place in the FPD industry Market diversification
> > >

Medical (3 slides) Industrial / Retailing (4 slides) Commercial (2 slides)

Supplier diversification Financials (3 slides) FY'05 Investments Questions & Answers
� 2004 Planar Systems, Inc.

Planar at a Glance
Founded in 1983, I.P.O. in 1993 Offices:
> > > > > >

(Nasdaq: PLNR)

Oregon (Head Office, Commercial and Industrial Business Units) Massachusetts (Medical Business Unit) Finland (Europe/ROW headquarters, EL manufacturing) Germany (European sales and marketing) Taiwan (Supplier operations) China (Asian sales and marketing)

Employees (Sep. 2004) FY 2004 revenue (fiscal year ends Sept.)

433 $256 million

� 2004 Planar Systems, Inc.

Display Industry Positioning
Infrastructure
Equipment suppliers
� PHTN, AFCO...

Less "Touch" with end customers

Component designers
� GNSS, PXLW...

Manufacturers

Glass panels
� NEC, Sharp, LG, AUO...

Components
� TFS, KOPN, PLNR (EL)

Solution Providers

Systems integrators
� TFS, RELL, WEDC, PLNR

Standard product marketers
� Dell, NEC, Samsung, PLNR

Market-specific innovators
� Barco, NDS, GDS, PLNR

More

More than 2/ 3 of sales now come from Planar-branded products.
� 2004 Planar Systems, Inc.

Planar's Business Diversification
Medical FY'03 Sales ($252M total) FY'04 Sales ($256M total) Gross Margin Operating Expense Operating Margin $89M, 35% $80M, 31% High High Medium Industrial $66M, 26% $55M, 21% Medium Medium High Commercial $97M, 39% $122M, 48% Low Low Low

50% 40% 30% 20% 10% 0% FY01
� 2004 Planar Systems, Inc.

Gross Margin* Operating Margin* CBU Share of Sales

*Margins exclude non-recurring items

48%

31% 11%

29% 8%

30% 10%

7%
FY02 FY03

23% 5%
FY04

Medical Segment
FY'04 sales: $79.5 million Channels: direct to OEMs, indirect to hospitals Sub-segments:
>

1

Embedded Components 1
� Legacy business, managed for profitability

2

>

Point-of-Care Systems 2
� HIPAA-driven systems for safety, security � Listed by 64% of healthcare CFOs for investment in

Digital Imaging Systems for PACS 3
� X-rays, CT scans, MRI images...going filmless � Top area listed by 72% of healthcare CFOs for investment within 5 years*
*Wall St. Journal, HFMA study, March 2004

3

� 2004 Planar Systems, Inc.

The PACS Environment

Picture Archive and Communications System

Servers, Storage, Network

� 2004 Planar Systems, Inc.

Channel Expansion
OEMs

Hospitals & Imaging Centers

HIS Providers

Value-Added Medical Resellers

PC Makers/System Builders

IT Resellers

� 2004 Planar Systems, Inc.

Industrial Segment Industrial Segment
FY'04 sales: $54.8 million High-performance display solutions
> Hardware specialties: optics, form-factor,

ruggedness
> Software: unique, user-driven

New, highly adaptable platforms
> Lever supply-chain strength > Rapid time-to-market > Target: retail environment

Strategy:
> Maintain excellent profitability > Address emerging growth areas

such as retail, signage, kiosks
� 2004 Planar Systems, Inc.

Display Solutions for Retailing
Retail environments revolutionized by technology, but behind the scenes Ready market for solutions in customerfacing areas:
> Point of purchase in shops > Quick-serve restaurants > Signage, etc.

Planar's strengths:
> Display expertise > Industrial design > Supply chain for scaling, low cost > Custom software, turn-key integration > Channel management
� 2004 Planar Systems, Inc.

Potential for Retail Display Solutions
Benefits of Visual Merchandising With Display Solutions
Category Locator Sign Gift/Enrollment Registry Kiosk Cart-Based Shopping Assistant Card Swipe / Signature Capture Cash Register At Point of Sales Drive-thru window Smart Code Readers and Scales

� Easier to find products and information � More information on products � Convenient review of inventory status � Quick updates to pricing � Affinity programs � Appealing look � Efficient payment processes � Reduced wait times

Point-ofPurchase Info & Ordering

Shelf-talkers on Gondolas

Dynamic Promotional Signage Entry Bulletins

Food menu and Self ordering Self Check-out Stand Marquee Window Display

Entrance

� 2004 Planar Systems, Inc.

Retail Display Solutions � Target Areas
Category Locator Sign Drive-thru window Gift/Enrollment Registry Kiosk Smart Code Readers and Scales

Planar's Interactive Marketing Solution

Cart-Based Shopping Assistant Card Swipe / Signature Capture

Point-ofPurchase Info & Ordering

Dynamic Signage

Shelf-talkers on Gondolas

Dynamic Promotional Signage
Entry Bulletins

Cash Register At Point of Sales

Food menu/ Self ordering

Food menus & Self ordering

Self Check-out Stand Marquee

Window Display

Entrance

� 2004 Planar Systems, Inc.

Commercial Segment
FY'04 sales: $121.8 million Planar-branded products
>More than 30 models in 5 families >Built by Asian partners >Sold through online resellers

Differentiated model
>Focus on B2B channel >Industry-leading warranty and support >Responsiveness to partners

Results
>Growth faster than robust market >Profitable with valuable synergies

� 2004 Planar Systems, Inc.

Commercial Business Synergies
CBU's 30,000+ units per month create
> Pricing power > Top-tier vendor relationships > Supply diversification across BUs

Leverage across businesses
> Offshore design capabilities,

speed to market
> Customer fulfillment flexibility

Channel partnership expertise
> Product leverage opportunities > Medical and retail products now sold

through online resellers
� 2004 Planar Systems, Inc.

Supply-Chain Management
Expertise partnering with top-tier, multi-$B suppliers Quick scalability Technology versatility
> Source best components > Capitalize on emerging

Selected Partners

technologies with less risk
$600 $500

Sales per Employee
Average yearly headcount
(thousands)

$400

$100 $0
� 2004 Planar Systems, Inc.

FY00

$199

FY01

$255

FY02

$296

$200

FY03

$457

$300

FY04

$574

Quarterly Revenue by Segment
Medical
$80 $70 $60

Industrial

Commercial

(millions)

$50 $40 $30 $20 $10 $0
M ar '0 3 Ju n e '0 Se 3 p '0 3 D ec '0 3 M ar '0 4 Ju n '0 Se 4 p '0 4 '0 2 '0 1 '0 2 D ec M ar Se p D ec Ju n '0 2 '0 2

� 2004 Planar Systems, Inc.

GAAP Net Income per Share
Four-straight years of profitable quarters, excluding one-time events
$0.35 $0.30 $0.25
Purchase charge Plant closures

$0.24

$0.20 $0.15 $0.19 $0.18 $0.10 $0.05 $0.00 ($0.05) ($0.10) ~
($0.70) ($0.15)

$0.24

$0.30

$0.25

$0.30

$0.19

$0.21

$0.11

'0 2

($0.70)

'0 3

$0.05

'0 4

'0 1

'0 2

'0 3

'0 2

'0 3

$0.18
Se p '0 4

'0 2

Ju n e

Ju n e

'0 3

Se p

D ec

D ec

D ec

Se p

M ar

� 2004 Planar Systems, Inc.

M ar

M ar

Ju n

'0 4

$0.19

Balance Sheet
(millions, except per share)

Sep. `04
Audited

Sept. `03
Audited

Cash and cash equivalents Total debt Shareholders' equity Debt to equity Book value per share Tangible book value per share

$30.3 $1.0 $165.5 Approx. $65 million in sales

� Half from commercial business unit
> Gross margin of 23% of sales > Net income of 0 to 5 cents per diluted share

� 2004 Planar Systems, Inc.

Planar's Story - Summary
Flat-panel display solutions: growth opportunities Diversification
> Markets (medical, industrial/retail, commercial) > Suppliers (top-tier in low-cost countries) > Technologies (EL, AMLCD, plasma...and software)

Value foundation
> Fiscal discipline, currently trading at low multiples

Growth focus areas
> Geographic expansion (medical and industrial) > Digital imaging (within medical business) > Retailing solutions (within industrial business)

More info: stewart_clark@planar.com / 503-748-6984
� 2004 Planar Systems, Inc.

Subscribe
x